Thaworn to meet top THAI execs to discuss airline's future

[johnsmith8888]

13 hours ago, yellowboat said:

They are like children with ADD and not a modicum of intelligence.  How are facial scans going to help make the airline profitable ?

Facial scams will help because the only people that matter will be getting huge kickbacks to make the contracts for  the unnecessary TECHNOLOGY. No one cares about the airline.

[the guest]

If my company was loosing 300 mill Euro, then serious restructuring of the company or even closure would be the only option.

[GinBoy2]

4 hours ago, the guest said:

If my company was loosing 300 mill Euro, then serious restructuring of the company or even closure would be the only option.

This is the major structural problem.

 

They are not only losing money on an operational income basis, but they are saddled with this enormous debt.

 

So on a balance sheet, huge operational losses, coupled with debt depreciation makes for a company that is in effect a zombie entity.

 

You are right in any real world situation, this is a company that would be unable to restructure its debt, without at the very least a credible plan to return to operational profitability, would be forced to shutter the doors.

 

But TG always seems to think that a 'credible plan' seems to involve buying more aircraft and thereby increasing debt!

 

A High School student in most countries could explain why that defies financial gravity   

[wreckingcountry]

And it continues to be bailed out by the state ! Other countries National airlines in similar situations have been forced to reform completely but “reform “ not in Thai vocabulary ...


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[NanLaew]

On 10/4/2019 at 11:42 AM, steven100 said:

seen your so effectual, significant and unsquattered …..   let's see what happens shall we.

So wrong. Like you, I am just another ineffectual, insignificant farang squatter.

 

The difference is I don't crave THAI (or Thai) failure and squawk about stuff that don't amount to a hill of beans.

[Sydebolle]

On 10/4/2019 at 2:20 PM, GinBoy2 said:

It's easy to say 'privatize it', but the debt, and remember it's, at least so long as they don't buy yet more aircraft, the 2nd most indebted airline in the world, makes it basically insolvent and no private investor would touch it with a 10ft pole.

 

The only way the Government could offload their stake would be to give it a cash infusion to pay down the debt then sell it as fast as possible while there was zero debt on the balance sheet.

 

And let's all start a book on whether that scenario will happen! 

 

Most legacy airlines after 911 went through the difficult process of restructuring their business, but not TG, it's continued to be a hobby project for RTAF and the HiSo elite.

 

The fleet mix and their seemingly insatiable appetite to buy aircraft is a case in point. 

 

Most airlines lease a good percentage of their aircraft, since it gives them flexibility and they are not carrying so much debt which they have to depreciate year on year.

 

The A380 is a great case in point. As lovely an aircraft as it is, it's not operationally profitable for airlines, you basically need a 100% load factor to break even.

For TG is was a case of 'Oooh, SQ have these, I gotta have one'. 

 

However unlike TG, SQ leased the aircraft and like many other airlines, including LH they are returning them at the end of the lease term and replacing them with the more flexible and profitable B777 B787 A350 for long haul flights.

 

One of the multitude of TG CEO's when he came in tried to cancel the order for the A380, since he actually recognized the business reality, only to discover that the 'crack' negotiating team had signed up to cancellation terms so onerous that basically they had no choice but to take them.

 

He didn't last long!

 

TiT, they will continue to have countless meetings, it will continue to bleed cash, and I and most of you will have turned to dust before anything changes

 

 

Brilliant wrap-up; my "privatization" suggestion was meant to get the governmental fingers out of TG and the little brown envelopes. 
Possibly just let it go down the shoot and let the private industry and its customers decide, if there is need for a new national carrier at all - in the first place.  

[jerojero]

And discuss their upcoming bonuses. Because they are such competent and great Executives (with the right connections).